brand -- launched a brand new flavor tea, blue berry. make sure you go to greta wire.com and let us know what you thought about 4 >> gregg: hello. i'm gregg jarrett. very glad you are with us this new year's eve. >> heather: i'm heather childers welcome to a brand-new hour. >> gregg: look at this. hollywood explode go into a towering inferno after an arsonist goes on a spree. we'll have later on the investigation. >> heather: and iran ready for nuclear talks as tensions continued to escalate is this a sign for change?

>> gregg: 24 hours, that is how long it took verizon wireless to drop a controversial fee. >> heather: you the first, racing to the finish line in iowa. republican presidential candidates fanning out across the hawkeye state pulling out all the stops all hoping to rally potential voters just three days ahead of tuesday's caucuses. chief political correspondent carl cameron is live on the campaign trail. hi, carl. >> reporter: just couple minutes rick santorum will be here at the library. as he campaigns across iowa and gaining more support from christian and religious conservatives. he was been low way back in the polls for way in the months. bitter complaining he didn't get enough attention in the debates.

yesterday he was getting nothing but attention watching the cyclones and getting attention on the campaign trail now. it does raise questions. some believe he could pull off an upset come from behind victory. that would be news for mitt ro any and ron paul. in romney's case he as strong organization. he came in second in 2008. he had as an organization left over from that. ron paul has been around the track here in iowa once before. his organization is considered very deep but not as big as mike huckabee who was the winner neither iowa back in 2008. the question of santorum remains open. that leaves a bit of mystery about some of the other candidates. newt gingrich is struggling under the weights of somewhere of $6-10 million of attack ads.

gingrich is looking past iowa and new hampshire to south carolina where he expects to have a remember. mr. gingrich acknowledged that he could be fourth or fifth. michelle bachmann who won the ames straw poll and sees herself in jeopardy of losing the caucuses in dead last. because texas governor completing his four tour by bus, has spent more money and super pack has spent more money and perry is trying to make sure that he gets that last ticket out of iowa. there is only three. there is a lot of candidates, there has to be a four because it's such a jumble heading to the finish than. >> heather: no clear way ahead. thank you very much, carl. >> gregg: new poll numbers showing rick santorum moving into the top tier in iowa. according to the latest rear

clear average of polls, santorum is trailing mitt romney and ron paul, tied at 14%. santorum spending more so is santorum surge hitting just the right time. let's bring in john fund to talk about it. happy new year. santorum's trajectory is in the right direction. time is quickly running out. do you think he can pull off a huckabee and surprise everybody with a victory? >> it's happened in iowa before. ask hour dean that was toppled by john kerry in 2004 democratic iowa caucuses. everybody in iowa votes on election day. there is not absentee voting. you can have a late surge. >> gregg: paul cameron made a very good point. he said tomorrow is sunday and

everybody in iowa goes to church speaking from the pulpit, pastors and ministers have a lot of sway. they generally do talk politics. 60% of the vote in 2008 in the gop was evangelicals. i'm not sure it's the same number this year but its powerful voting bloc. could that change things in less than 48 hours? >> absolutely. evangelicals have been looking for a candidate. that is how mike huckabee won there. i think he will do much better than the polls he indicate. solid third or contending for second. >> gregg: let's do a what if. let's say that santorum does poll a huckabee as they now say. the problem with huckabee is that afterwards he fizzled

because he didn't of the money or the organization to sustain a run beyond iowa. what about santorum? >> santorum is very much in the same category. he almost has no money. he has run almost no ads. if he goes to new hampshire he won't be able to raise enough money to compete. then you go down to south carolina and that requires real organization. he doesn't have much. it would be the ultimate guerilla campaign but the new media and it's approved proved much more important. >> gregg: 1976, peanut farm frer georgia that nobody heard of invests everything in retail politics in iowa, suddenly jimmy carter is a phenomenon and propels him then without much organization or money to win in

other states and get the nomination. is that the scenario? >> conceivably. remember, mitt romney, he and surrogates have done $6 million. they would do that against santorum. he lost the pennsylvania election race he ran and you we would see santorum put in the same kind of box that newt was. romney is trying to consolidate the center right of the republican party. he has the money to try and do that. on the other hand romney still hasn't closed against conservative. >> is state, wl, really still very much in play. i was looking to the undecided, 41% say i can still change my mind and 6% say they are completely undecided. that is a huge number isn't it? >> when i was in iowa, i talked

to people that will already changed their mind three times. they probably changed one more times. they can change their mind just before they mark their ballot. >> gregg: because it's a free for all. everybody is trying to convince everybody else. is rick santorum's late surge romney's gain because essentially it appears to knock off newt gingrich? >> mission accomplished if that is case. because newt had the staying power to raise a lot more money in the short run. he raised $9 million than santorum or ron paul. ron paul has enormous obstacles. santorum would start off with less money. mitt romney would be smiling in santorum came in second place if iowa. >> newt gingrich, he is very high in the polls in south carolina and florida.

would an embarrassment in iowa, what would that do to those other states? >> obviously people pay attention to who won the previous contests. we've seen often the winner in iowa gets a bounce in new hampshire. i think newt gingrich would be in real trouble because he needs money to compete. he has done a good job so far but if he does badly in iowa the money will dry up. >> and rick perry off the cough talking about praying a lot. he said i pray because i'm prone to make a lot of mistakes. ouch! that is not -- >> that is not a mistake in itself i think if he said i make a lot of rhetorical mistakes. i think again perry campaign, has been bedeviled by the

stumbles of their man. >> gregg: there you go. john hunt, happy new year. >> fox news is the home base for the iowa caucuses tomorrow night 8:00 eastern time, an american election headquarters special previewing tuesday's race hosted by brett baier live and megyn kelly from new york city and we're going to have special coverage of caucuses beginning 6:00 p.m. eastern time rule right here on the fox news channel. >> heather: four of the republican candidates showing their support for the lawsuit filed by rick perry's campaign alleging virginia's state requirements for the significant itself to get on the ballot is unconstitutional. they said they failed to meet the requirements and currently out of virginia's primary. that is not the only controversy surrounding the vote in that state. peter doocy has more. >> reporter: as of march 6:00,

they will have two choices, miot romney and ron paul. before allowed to pull the lever for either, they have to promise the same thing in november by signing something that says, i had under signed i intend to support the nominee of the republican party for president. now, if you break this pledge you won't get hauled off to jail. it's not legally binding. but in the old state, some republicans says this is reckless. >> we have mandatory voting for somebody you never heard of and might not be running for office right now. >> for the republican party what the founders wanted, i just think it's a mistake. >> reporter: still it got unanimous approval of the state election board. they voted 3-0 to implement it. it's interesting, newt gingrich that ron paul got the republican nomination he wouldn't be able to support him. since he is virginia resident he

would be clashing to the prejudice to the state's gop but now we wait to see what happens on primary day. >> heather: peter, thanks. >> gregg: fox news alert. new reports coming in concerning a suspect detained for carrying explosives inside a texas airport. police say the man is on active military duty. he was trying to enter a terminal at mid land international airport carrying a bag filled with military grade explosives. he was apparently headed to a military base in north carolina along with his family. the suspect now in the custody of the f.b.i. in the meantime, the airport has reopened for normal operations. >> heather: more fires burning in l.a. today as police search for suspects. the string of arson attacks. at least nine cars were torched overnight after two dozen fires were reportedly placed early friday morning.

police say in nearly every case the fire began in a parked car and given the unusually high number of cases, they say they are not taking any chances. >> department operations, command has been activated at level one for the city. this is a significant event that taking place here in the san fernando valley and other parts of the city in places in hollywood and rest of the city. >> heather: investigators aren't sure if the incidents are connected. no arrests so far and no injuries record. >> gregg: an about-face for verizon wireless over a so-called convenience fee after avalanche of consumer backlash. they wanted subscribers to pay $2 but customers are not having it. julie banderas is live in our newsroom with more. >> julie: don't call it a convenience fee. it took one day for verizon

wireless to reverse the decision to tack on a two dollar bill paying fee for online payment. after consumer backlash blew up and petitions all over the web, verizon announced it had changed heart. company's president releasing a statement, at verizon we take great care to listen to our kner we believe the best path forward is to take advantage the most efficient options which means eliminating the fee. >> the fee would have applied to some of the customers but that didn't fly with revenue of $15 billion in the most recent quarter. these companies are desperate, where can they cut back, where can they cut back. when you can't cut anymore, the only way to get extra revenue is tacking it on the consumer and hoping the consumer doesn't

notice. >> julie: unlike recall passengers, or bank of america customers, verizon customers have limited options because they are locked into multi-year contracts. what surprised many, however, was how quickly they rolled back the fee considering bank of america took them a month to roll back their fees. experts predict this isn't the last time a large corporation will try to charge customers usage fees, hopefully the collective consumer voice will be able to change the next company's plan. so read between the lines and the fine print. >> gregg: i wonder how many fees we don't know about? they slip them in there. we don't even know it. julie banderas, thanks so much. >> heather: naval drills are going on in the persian gulf right now. military leaders say they are delaying plans for a

controversial missile test. is this a sign that iran is ready to ratchet the techx down with the u.s.? >> gregg: and those tinge in the new year, champagne companies are celebrating. this year is bigger than normal. >> heather: live look at times square for you where there are already plenty of people waiting for the ball to drop. stick with fox news for all the celebrations. >> gregg: it's a balmy evening out there, wow! ok! who gets occasional constipation, diarrhea, gas or bloating? get ahead of it! one phillips' colon health probiotic cap a day helps defend against digestive issues with three strains of good bacteria. hit me! [ female announcer ] live the regular life. phillips'.

>> heather: welcome back, taking

a look at some of the stories topping the headlines, bachmann, perry and gingrich campaigning in iowa but romney is in new hampshire, ron paul is in his native texas. federal investigators clearing infamil baby formula. it's linked to recent cases of infections that killed one newborn. walmart and other retailers pulled the cans as a precaution. >> possible break for a missing woman. they found a body near the home. they are waiting on test results to see if it is in fact her body. >> gregg: you might say the cup run eth over. they are expected to see record-breaking sales this weekend and economists say we

can all drink to. casey stegall is live in los angeles. case so the champagne beat right now. why an increase? >> reporter: i probably didn't have to do with interviews for experts for this story because i fancy myself as a bit of champagne connoisseur myself. increase is on par with what we're seeing on the luxury goods market where sales are up, triple-digits for high end brands. this boost is not just because of holiday sales it's happening year round. bottles produced in champagne region of france are the only ones that can call themselves champagne. they are peaking before the recession around 330 million bottles worldwide. >> through august we were up almost 30% and we believe this is a combination of both of a

greater interest in wine for americans but also a greater understanding of champagne and seeking to celebrate little moments with a wine that is associated with celebration. >> reporter: wine experts see a trend of spending more per bottle. >> gregg: are americans spending a lot on the french champagnes? >> reporter: not necessarily. a lot of shipments from france are going asia that has taste for brand names. one wine seller we spoke with americans are opting for more bargain bubble. >> i think the economy has forced people to reconsider how they spend the money. they have been looking at more sparkling wines and get a lot of satisfaction with the quality and not as concerned with what

the label is on the bottle. >> reporter: champagne sales are improving they are not back up to pre-recession figures. i'll have to toast to you tonight, happy new year. >> gregg: i find it you are doing the champagne, wine, beer and marijuana stories. >> reporter: it is what is making news. >> gregg: it is california, my home state. cheers to you. >> heather: hours away a live picture of the crossroads of america for you, times square in new york city. revellers are already arriving. million people will be crowding the streets to watch the ball drop and ring in 2012. if you can't make it, fox news channel is the place to be to celebrate as you ring in the new year. all the fun starts at 11:00 p.m. eastern. megyn kelly and bill hemmer hosts. guests, trace adkins.

and cast of the broadway hit, rock of ages. send us a new year's greetings send it to 36288. you have new text and leave a space and type a brief message. you can text happy new year gregg. >> gregg: or heather. >> heather: i'm going to be watching the ball drop. you have to do it once. >> gregg: good for you. it's warm out there. >> heather: doesn't feel like january or december. >> gregg: wait for two days, it will be 29. president obama is taking a less talk approach to diplomacy. has that paid off? >> heather: look out below, a camera coming crashing down missing players at a college bowl game. amazing video up next.

>> gregg: top of the hour, top of the news. slang investigating a new round of suspicious fires, as many as eight vehicles are torched in what police suspect is connected to recent car fires in the area. >> heather: crowds and anticipation building in

new york times square all for the world famous ball drop. hanging 3400 feet above the streets. >> gregg: an alarm. >> six others are injured, two killed. no group claiming responsibility so far in that attack. >> heather: new developments concerning iran's military exercises going on in the persian gulf. military leaders announce plans to test fire long-range missiles instead it appears they delayed the tests but could be signaling they want to start a new round of nuclear talks. doug is live, it sound luke we may be seeing a sudden shift in iranian diplomacy, is that true? >> that is what experts are suggesting. it's not like the historical pattern because it's a show of

belligerence and then a willingness to compromise. it came this morning when the commander of revolutionary guard this is like closing the strait of hormuz belongs to five years ago. today's debate contains new layers and the time is not to raise it. earlier on friday, the chief of iran's navy struck a son conciliatory tone, they can chose or the strait but doesn't have any intent at that point. they have three aircraft aircraft carriers within striking distance of even iran. >> we are showing the unions that we have the military might in case they there was going to be some kind of conflict. we can have those forces but the question is are we going to use if the situation arises. they have strongly warned iran to closing the strait of

hormuz. >> heather: what the latest of the war games that iran has been conducting there? >> it's been conducting the games for a period of ten days. they are winding down, scheduled to end on monday. they encompass about 200 mile stretch of ocean from the sea strait of hormuz to the indian ocean and to the gulf of aden. vessel and aircraft have approached close to u.s. warships there have been no overt steps towards hostility that we have seen or heard about. >> heather: doug mckelway reporting live from washington. >> gregg: record crowds in protests across the country. you are looking at new video of demonstrations on friday. that gunfire in the background as police used water cannons to disperse the crowds. at least 22 people were killed. the violence showing no signs of

letting up despite the presence of monitors from the arab league to ensure that syria's government ends their bloody crackdown. >> heather: prime minister nouri al-maliki says the u.s. troop withdrawal begins a new chapter for his country. they broadcast the ceremony in baghdad. praising iraqis for us on tings saddam hussein and urged his people to move forward in unity as the nation focuses on rebuilding. >> gregg: it has been a fairly big diplomatic year from iran's nuclear ambitions to the crisis in syria. his approach to international delaware over the past three years has, diplomacy has been different but has it paid off? what can we expect from the administration next year. former advisor of six secretary

of states and can the america have another great president, author of a book. how would you assess his efforts at dialogue with adversaries? >> no speck spectacular failures or spectacular achievements. i thinkhave learned whether democrats or republicans that in the end at least these days its cruel and unforgiving world. there is a place for diplomacy and dialogue if there is something to dialogue about. if you look at iran and syria, and even north korea what you see in many respects fundamental divides between the united states and all of these countries in terms of what their interests are. very little room for of the interests. iran is classic example. in wake of the bush

administration's inability and even the bush administration tried engagement in 2003 that they were going to turn over a new page. maybe the president believed that barack obama, the noble peace prize and all of this stuff would somehow be used to charm the iranians to change course. even the president now understands that there are fundamental divisions between washington and tehran. >> gregg: it would appear that tehran has been proceeding with their nuclear program and we heard a lot of threats coming from iran. on the closure on the strait of hormuz in reaction to oil sanctions. now, all of a sudden, i don't know if you heard doug's report a moment ago, now tehran is signaling they woont want a new round of nuclear talks, is that

charade or genuine? >> i don't think it's genuine. i think the iranians understand that a threat to close the straits loses it's efficacy almost immediately if iranians try to make good on that threat. as far as the nuclear issue is concerned, the ieae has absolutely documented the iranians are determined at least to create a breakout capacity within six to eight months from the time a decision is made they can weaponize. so-so, no, as a long movie we're in a phase but in the end this isn't going to have a happy ending. >> gregg: let me talk about syria. the approach from the obama administration perhaps assad could be coaxed down a different path to dialogue, how is that working out? >> for over 20 years in democratic and republican administrations, i watched the notion that syria was somehow too big to fail. i think that the bush

administration recognized that was not the case. the obama administration recognizes it, as well. it's moving south but it will be a long movie. they still control all the elements of stated power, military, security services, intelligence and the opposition does not have the bill but it doesn't have the capacity to produce fractures this in those power centers anytime soon. in this one i think it's going to get worse. >> gregg: what about north korea. president said he wanted to give dialogue a case with crong yank. he was greeted in his first year with a north korea nuclear test, long-range missile launches. how is that working? >> its black box. now, the transition has made it more opaque. it's difficult to read. it may l well be that this transition, more out of weakness than a sense of confidence and strength may well provide

depending on how the north koreans wanted to play this an opportunity to begin reengage in a quote, unquote, process. but at the end of the day you have the same fundamental problem. north korean interests on the nuclear issue that simply don't accord with our own. i'm not sure, i can bridge a creek but you can't bridge an ocean. >> gregg: let me hit venezuela. there were reports that the administration thought in the first year that reached out to hugo chavez in venezuela would be one of easier adversaries to win over in dialogue. your assessment? >> i think a lot of diplomacy is personal. presidents have enormous self-confidence and some plea that persona axeachbd by goodwill gestures and diplomacy, they will test the intentions of an adversary but they won't

change fundamental core interests. whether it's venezuela, syria or iran, the reality is we have divergent objectives and goals. in that sort of circumstance, diplomacy is not going to pay quick or easy dividends. you can test your adversary and there is nothing wrong with it but on this one, i think you really have to be pretty skeptical. >> gregg: eric david miller, we're looking forward to consider bicycle we'll have to wait until it's published soon. thanks for being with us. happy new year. >> same to you. >> heather: switching gears entirely, a wild scene at the bowl in tempe, arizona. see that, that is camera. a camera that was hanging over to the players. it was suspended from one of those wires they get the overhead shots. that wire snapped sent the

equipment. it narrowly missed one of players. game was delayed about five minutes while the camera was dragged off the field. nobody was hit by the camera. >> gregg: that has happened before. those cameras give you incredibly wonderful shots of the action on the field as if you are there. you kind of worry about potential damage. >> gregg: president obama announcing a newew year's resolution on his relationship with congress. is this the right direction for the country? >> plus, illegal immigrants, government is launching a toll free hot line. a fair and balanced debate up next. get married? no, i wouldn't use that single miles credit card.

nice ring. knock it off. ignore him. with the capital one venture card you earn... double miles on every purchase. [ sharon ] 3d is so real larry. i'm right here larry. if you're not earning double miles... you're settling for half. really? a plaid tie? what, are we in prep school? [ male announcer ] get the venture card at capitalone.com and earn double miles on every purchase every day. what's in your wallet? was gonna say that. uh huh... on the 4g lte devices you love. like the droid bionic by motorola for $199.99. or the pantech breakout for $49.99. our lowest price ever. get the technology you love, on the network you deserve. and for a limited time, get twice the data for the same low price. verizon.

>> heather: white house announcing a new years resolution for president obama. a top aide saying the president will limit his dealings with congress in 2012, but is this the best thing for the american people? let's bring in our panel, angela political analyst. jehmu greene and deneen borrelli. thank you for joining us, happy new year! >> heather: president obama is moving ahead and no more of this messing around with dysfunctional congress and he is going to separate himself from that. is this wise or is he making a good move? >> its wise decision because the congressional approval rating is

so low. having that said that independents are going to decide who are next president is going to be. so instead of blaming congress he needs to come out with real solutions to american problems. >> which is exactly what he needs to do. he has been putting forth executive orders were keeping families together, bringing together military families was big part of the holiday message clearly. middle-class, when he asked the american people to share their stories about what $40 in the recent payroll tax debate. how did that put money in our pockets? how did that give us more jobs, brings families together? >> for new year's resolutions, i thought that meant resolving

something to do something different. in this case, obama has not been working with congress anyway. look at harry reid that has not allowed a budget to pass. if he is resolving to be a better leader for our country. >> unfortunately congress is playing politics and in washington, d.c. is dysfunctional. white house is correct about that, but candidate obama said he was going to change washington, d.c. since he's been elected it's been more partisan politics. >> exactly. there is a lot of hostility toward this president which is clearly focused in the republican agenda. he has no other choice but play the father figure role. soe he has put so many times on the table for compromise. >> or is it about getting out and campaigning. is this about reelection. is that what this ultimately really about? >> so tomorrow it's going to be

the first day of 2012. clearly we're in the presidential election cycle. he is going campaigning but that doesn't mean he is not continuing to serve very honorably. >> he is spending tons of our money on wasteful products. his policies are failing. it's the truth. unemployment is still high, clear through the roof. >> it's been more about politics than policy and we're going to see more of the same. the party to obama they have named him comparison in chief. i believe that what we're going to see a campaigner in chief rather than commander in chief. >> they can wait to work together. >> we can wait, families can't wait. there has been a focus away from families.

>> heather: immigration policy, growing controversy over a new federal hot line that is intended to help illegal immigrants. obama administration is saying it's been launched that illegals are aware of their rights. >> i have mixed feelings about this. when i read deeper in the article, it's also about people reporting crime. if you look at illegal aliens or undocumented workers they have the highest crime rates because they don't want to report crimes that have happened to them. it's about illegal immigrants. number two, also this hot line gives your rights and how to sue the federal government. if you don't belong here, how can you saw the government? >> federal government paying to tell you how to sue them. >> you have illegals to use our

tax dollars to make phone calls, they are breaking the law. this is a waste of our tax dollars. why not put the resources on securing our borders. that is what i think. >> resources have been securing our borders -- let me finish. this president has supported more undocumented immigrants this country than president bush in his two terms, but the reality is, i do have mixed feelings like this. i like to see government operate more efficiently. this is a system put in place so the immigration folks can be more efficient in getting the criminals out of the country that focused on. this is suspect happening right before an election year and hispanics are not very happy because president obama made so many promises what he would do to help the hispanic community.

so he is doing this as a gesture. >> i think he is polling quite well with the voters. we have seen mitt romney, he is 18%, but the reality is that there is a need for much better elevated immigration conversation in this country. we do need to see the federal government taking action. it would be better for them to take action than arizona or alabama and all put together. >> investigating arizona to secure the words from. >> heather: we have to wrap up. a store clerk held him at gunpoint. he puts his life on the line to stop a robbery. why did after that, it cost him his job. take a listen. >> i grabbed her around the neck and grabbed the gun. of trepida, not quite knowing what the next phase was going to be, you know, because you been,

you know, this is what you had been doing. you know, working, working, working, working, working, working. and now you're talking about, well you know, i won't be, and i get the chance to spend more time with my wife and my kids. it's my world. that's my world. ♪

>> heather: welcome back. an incident at a local target store in texas now re-ignite go the debate over public breastfeeding. it started when two employees asked a mother to stop breastfeeding her child and move to a private dressing room instead. that led to this. hundreds of moms staging a quote nurse-in at more than a hundred target stores all around the country. here again, angela and deneen, how do we feel about this? >> they sell cars to television, to hamburgers. to be in public it should be.

so that nurse-in, good for those mothers. >> and they need more diversity training, managers came down on the employees for doing this. you have stores where you have protest a feeding places for women. so where they have those, you won't have a lady pulling out a breast. >> you have to pull it out in aisle and your child is hungry, go ahead and do it. >> i agree with jehmu greene. >> we have a boob control going on here. the kids are hungry and as angela mentioned there are places where there are private rooms. >> which is something the mother could do. >> private policy is to actually allow it that is their policy. >> these employees they dnt came down on this lady.

that what the controversy is. but i don't know about breastfeeding in the middle of an aisle. >> ask a six-month-old child. >> depending on where you are and what area of the country, women are more less inclined to breast-feed in public. >> we just saw with the had to apologize to make negative comments. >> they came down on him. i think he saw the light as most people do. once you spend quality time with a mother and hungry child. they don't wait for anything. >> they are more inclined to do it down south, than oregon, it's still pretty conservative. >> heather: a man in florida is fighting back after getting fired for body slamming an alleged armed robber. eric anderson says one of the

female suspects pointing a gun at his head and threatened to shoot. but the convenient stores their policy is never provoke, chase or engage a robber. so he lost his job. >> i'm glad i don't work there. if someone has a gunpoint go at me. i'm not going to think about etiquette. >> this guy had an opportunity to protect himself. the individuals were arrested. thank goodness no one was injured. they were ladies or women. >> ladies with their guns. >> we have seen the stories before and the stores have bureaucratic policies but you do have to act. they should hire them back. >> heather: there is a chorus of opposition to standardize the

star-spangled banner. a senator wants to make sure the national anthem is performed the way it's intended and would impose a fine for people that don't start doing that. >> accidentally, out of fear, look i make a birthday cake for the 4th of july and i think it's important on to stand up for the national anthem but legislating it is a little bit of a slippery slope. >> i think at school they made a parody out of it. >> that is what auditions are for. >> heather: we're going to have it singer at at later date. >> happy new year. >> heather: gregg.

>> glad you didn't ask me about the breast thing. new year's eve party, live picture, times square if new york city. look at all those folks revellers beginning to arrive. million people could be arriving there and if you can't make it to times square, make it to our network, fox news channel the plaitd place to celebrate. fun begins 11:00 p.m. eastern, megyn kelly and bill hemmer. and you can text your greeting to a number 36288, you type u text. heading to the homestretch in the state of iowa. why is some people are saying it's time for him to start fighting back, we'll ask a gingrich inside insider about that next.

forty years ago, he wasn't worried about retirement. he'd yet to hear of mutual funds, iras, or annuities. back then, he had something more important to do. he wasn't focused on his future but fortunately, somebody else was. at usaa we provide retirement solutions for our military, veterans and their families. from investments... to life insurance... to health care options.

learn more with our free usaa retirement guide. call 877-242-usaa. ♪ that's good morning, veggie style. hmmm [ male announcer ] for half the calories -- plus veggie nutrition. could've had a v8.

>> gregg: welcome to a brand-new hour of america's headquarters. i'm gregg jarrett. >> heather: i'm heather childers. the fight for iowa entering its final phase. candidates spending the last few days before tuesday's caucuses rallying potential voters in the hawkeye state inform plus, a major development in the legal battle over virginia's republican primary. michelle bachmann, newt gingrich and others joining rick perry. sign ago letter of support after they all failed to qualify for the state's primary. chief political correspondent carl cameron live on the campaign trail. tell us about the latest on this virginia lawsuit. >> well, it's an illustration of how this campaign really has got to be run nationwide. while all the attention is on iowa, there is a remaining controversy in virginia where most of the presidential candidates were not able to qualify for the virginia ballot.

only ron paul and mitt romney were able to get the necessary signatures. and now all five of the remaining canal dates are -- four others joined the lawsuit against the state of virginia in an attempt to get an injunction established so they can get on the ballot. while that is unfolding today, now five candidates essentially prepared to sue the state of virginia in order to change their access to the virginia ballot. the attorney general of virginia has agreed to push for emergency legislation through the virginia assembly that would essentially allow all the candidates who are either receiving and/or qualifying for federal matching funds to be on the ballot if they choose and certified by the stay of virginia. big changes trying to make it possible for these candidates to continue to compete. it may be several weeks before it's resolved legally and/or legislatively in virginia. but the virginia commonwealth primary isn't scheduled until march. so they've got enough time to change it and perhaps they will be allowed to compete. >> gregg: how important are the undecided voters in iowa on

tuesday? are those who say my support is not completely solid, i could switch, what about those? >> it's a huge number. of course, all voters start undecided at some point. in virginia -- in iowa and new hampshire, they tend to stay undecided 'til very late in the game. we wrapped up an event in iowa with rick santorum who showed up to an event that was supposed to take place at the library. the room was too small and the crowd was forced to come on the sidewalk and mr. santorum held court for 15 and 20 minutes and he had a chance to talk to a whole host. tremendous number of folks left saying i really like rick santorum, but i like michelle bachmann or mitt romney or i like et cetera, et cetera, which speaks to the iowa voters' sophistication and refusal to be cornered or follow polls just because the polls say so. the undecideds and the late decision is what things this thing up and these are astute and sophisticated caucus goers. they know that it's not really a

good idea to judge a movie and walk out before it's over and you've read the credits. they'll hang on until they actually go to caucus tuesday night at 7:00 o'clock to make sure they see how it ends and they make a most informed choice possible. rye now it looks like mitt romney and ron paul are fighting for the lead. romney probably has an advantage, but ron paul has a tremendous organization. tomorrow the undecideds and the caucus goers in large, large numbers go to church. there is an estimate of 120,000 people likely to take part in the caucus. half are evangelical christians who are likely to go to church and their pastors are likely to talk from the pulpit about who to support. rick santorum who has two dozen pastors who will mention him by name. people in the pews may have a big santorum boost. on the other hand, there's a lot of christian conservatives backing newt gingrich and rick perry. they are the ones to watch in the next 4 hours.

whoever coalesces that huge voting locke in iowa, could have a lot of wind in their sails three nights from now. >> gregg: absolutely. carl cameron live in iowa, thanks very much. gingrich campaign could be embarking on a new direction just days away from the iowa caucuses. his campaign reeling from a series of attacks in the hawkeye state, attack ads. the poll numbers taking a hit. the latest averaging poll showing gingrich at 14%, behind mitt romney, ron paul. he used to be way in front. now several insiders urging gingrich fight fire with fire. kelly ann conway is a gingrich surrogate. great to see you. i don't know if you saw t but front page story, lead, "new york times," above the fold, pac ads rip gingrich. romney stands clear. look, there is a reason why negative ads are so popular among politicians, because they work. you know that. they're effective in influencing

voters and, in fact, 45% of the political ads in iowa this month, they have been attacks on newt gingrich and he has seen his support drop in half. is it a mistake for him not to respond in kind? >> newt has made the point even just this last day or so, gregg, that he intends to draw more contrast, deeper, richer contrast, and frankly, some of the contrast against mitt romney, romney is a target-rich environment. you can see as the dnc has shown in a cleverly shown ad mitt versus woman. i'm for a woman's right to characters now i'm pro-life. i was the inspirational blueprint for obamacare through romney it is care, now i'm not for the individual mandate, et cetera. so i think you will see more punches going forward, but let me just make the distinction because i think it's important for the audience. we absorbed that 9 to

$10 million in paid negative advertising. they're spending money to basically say newt gingrich takes the wings off butterflies. we prefer to show contrast in nonpaid advertising and newt is high risk, high reward. he said from the beginning -- >> gregg: kelly ann, you know how polls work. they show newt gingrich's support really began to tumble immediately after the ads began to air. yesterday's poll showed a stunning 19% increase over the last month to 35% of the number of likely caucus goers who are saying gingrich is unacceptable as a nominee. doesn't that tell you that he needs to counter the attack ads with his own attack ads? >> what it does tell me is that he's ready for the obama machine. mitt romney could never have sustained what the romney super pacs are doing on behalf of mitt romney. that's very clear because he told your own bret baier, gee, this is an unusual interview. so frustrating to be asked about romneycare. imagine if he were subject to

such personal petty, and vicious attacks such as these. i think you will see, whether it's the debates in january or states after iowa, i do predict that you will see a tougher newt out there making contrast with these people's records. let me just also say that it hasn't really been to the benefit of mitt romney. 75% of these caucus goers are nonromney. he's had 25% as his high water watermark. there's a question about whether the sponsor of the ad takes a hit as well as the subject matter of the ads. >> gregg: well, even gingrich's own supporters in iowa are really grum being about this, and i'll name names. josh burns, who is a state representative, well-known in iowa. he's chairman of gingrich's campaign for mitchell county there. and he said he has been absolutely blown away by how much damage he's attack ads have done. we'll quote him up on the screen. how long can you take the beating before hitting back? maybe some day you'll look back and say, boy, he should have

pulled the gloves off. is there dissension in the campaign over this, kelly ann? >> no, there is no dissension in the campaign over this. we work for a man who from the beginning has said that he would like to run a positive campaign. we continue to run a positive campaign in terms of his campaign speeches, the answers to questions, and even in these debates. what newt said to a reporter just yesterday, though, gregg, and i think cruelty as a preview, is that in the upcoming debate, he will show more contrast. had he known there would be a hail storm of this slop coming -- >> gregg: you keep saying that he will counter by showing contrast in his verbal statements, in interviews and debates and, you know, meetings with constituents and so forth. i'm talking about fighting attack ads with counter ads. that's what i'm talking about. i mean, isn't this one of the reasons why several gingrich staff members quit enmasse last

spring? >> no, they quit for other reasons and you've seen what's happened to them since, but in any convenient, no. -- event, no. let's think clear. the super pac that romney can't disavow, he can't use his magic wand and stand down the negativity. if we're having a discussion about what super pacs may do in defense of newt or in attacking others, they're free to do that. we can't coordinate with them. but it's a free country. people can spend money like that. i don't mean to talk past you. i just need to say that newt wants to run a positive campaign. if we weren't ready -- if i wasn't ready for something, it was how petty and personal things were going to become. >> gregg: a few days ago, when a super pac that likes newt gingrich started running a negative ad, mr. gingrich said, i wish they wouldn't do that. a mistake?

>> no. i respect what he has to say, what he is saying and perhaps he disagrees with the particular content of that ad. in other words, he think, newt believes that you can have a pure contest on the issues, that you can basically run a campaign the way these debates have run, where the candidates are asked substantive questions on issues that really affect iowans and the rest of america, gregg. and you deserve an answer. we still believe in the gingrich campaign, that the voters are smart enough to want to have candidates talk to them and about their issues rather than about each other and we'll see how that pays off. i have to repeat, 75% of the vote increase iowa still are not for romney. he spent millions there and been running full time for five years and these negative ads haven't helped them. they've hurt others. >> gregg: a lot of undecided. we have from 41 to 45 undecided. and some others saying they're not quite sure they can change. it's still in play there.

your point is very well taken. kellian conway, thanks for taking the time. >> thank you and happy new year. >> gregg: you, too. fox news is your home base for the iowa caucuses. tomorrow night, 8:00 p.m. eastern and american election headquarters special preview on tuesday's race hosted by bret baier live, megyn kelly. we'll have special coverage. caucuses this tuesday beginning at 6:00 p.m. eastern right here on the fox news channel. >> heather: president obama signing a $662 billion defense bill into law, but not without reservation. the president saying that he has serious concerns about provisions regarding the handling of suspected terrorists. doug is live in honolulu, hawaii, where the first family is on vacation. hi, doug. >> hi, heather. those reservations that you're talking about put the president in something of an awkward position because he did something that he accuse used to criticize president bush for doing. this is a massive bill, more than a half a trillion dollars

and it covers everything from a u.s. military operations in afghanistan to u.s. military weapon systems, all kinds of things. it also covers how accused terrorists are to be handled when they're in u.s. custody. this is one of the sticking points. when the president signed this into law, he issued a signing statement, kind of a caveat, kind of his understanding of how he's going to interpret this law, that is something that president bush often used and he was criticized for doing so. now, in other news here, we're also learning more about what the president plans to do during the course of 2012. the white house says his campaign operation will begin in earnest at some point in coming months. we don't have an exact date for that. the president will be spend ago fair amount of time out on the campaign trail. we know that during the iowa caucus, that night he is actually going to contact democratic caucus goers through an on-line video message to talk to them, to try to get them amped up for the coming year. also during his weekly address today, he thanked supporters who

he think pushed him over the edge in terms of dealing with congress on the holiday tax extension. >> it was good to see members of congress do the right thing for millions of working american, but it was only possible because you added your voices to the debate, through e-mail and twitter and over the phone, you let your representatives know what was at stake. your lives, your families, your well-being. >> interesting side note here, a white house official says the president really will not spend much time next year interacting with congress. he wants to get that payroll tax cut extended for the entire year. but beyond that, he will strike out on his own. the president's approval numbers are not that great, but congress' are even worse. heather. >> heather: absolutely. thank you very much, doug, reporting live for us from honolulu. it will be an unexpectedly active campaign season for republican house speaker john boehner. fox news confirming that he will face a challenge in the gop primary next year.

apparently he'll face off or square off against 26-year-old david lieu wakes tea party loyalist. boehner did not face a primary challenge in 2010 and then went on to easily defeat his democratic opponent in the general election. >> gregg: we're learning more about a suspect detained for attempt to go carry explosives into a texas airport. police say a man was stopped entering midland international airport allegedly carrying a bag of explosives. investigators cannot confirm the type of explosive, but they say it was contained in a military grade wrapping. the suspect taken into f.b.i. custody and the airport has since reopened for normal operations. major developments out of iran. tehran delaying long-range missile tests as part of the war games exercises. signaling perhaps they're ready for new talks with the west over its disputed nuclear program. but concerns are growing over threats to close off a vital oil

shipping route in the gulf. doug is live with more. hi, doug. >> hi. this appears to be a remarkable shift away from iran's apparent bridge recognize toward a conciliatory tone. it began yesterday when they said iran can blockade it at any time, but then added and this is key, it has no intention of doing so at this point. then today, a scheduled test of an iranian long-range missile never happened. following that surprise, the commander of iran's revolutionary guard published something on the web site that said discourse about closing the strait of hormuz is from five years ago. today's debate contains new layers and the time has not yet come to raise it. this apparent backing down occurring at the same time that the u.s. placed three aircraft carriers within striking dance of iran. >> we're showing the iranians that we have the military might over there in case something were to go wrong n case they were going to be some conflict.

so we can have those forces over there. the question is, are we going to use them if the situation arises where it's prudent to use them? that all remains to be seen. >> the united states has been sending other powerful signals to iran in addition to the threat of new sanctions on iranian oil exports. this week it announced a big sale of fighter jets to saudi arabia, 84 of those jets. and then last night it announced the signing of a $3.5 billion deal to sell the united arab emirates a missile defense system. it appears with each new act of iranian aggressive posturing, the u.s. is meeting it with a response to protect iran's regional opponents. >> gregg: doug live in washington i -- thanks very much. >> heather: the people have spoken. customer backlash prompting verizon wire tolls drop plans for so-called convenience charge. the company announced it would soon start charging subscribers to make payments on-line or by phone.

customers responded with a resounding no. julie banderas live in our news room with more. hi. >> it took one day for verizon wireless to reverse its decision to tack on the $2 bill paying fee after backlash blew up on twitter, logs and petitions all over the web. brie verizon announced it had a change of heart. the president releasing the following statement himself. quoting, at verizon, we take great care to listen to our customers based on their input. we believe the best path forward is encourage customers to take advantage of the most efficient option, eliminating the need to institute the fee at this time. unlike airline passengers, or bank of america customers, for example, who have a choice to walk away if they characters verizon customers have limited options because they're locked into multi-year contracts and in this economy, a company with revenue of $15 billion in the most recent quarter that tries to tack on a fee doesn't fly with consumers. >> what executive thought this was a good idea? i mean in an environment where

it's literally cut throat with your competitor, with at & t, the smaller competitors, the idea that you're just going to get this one to go through and no one will pay any attention, especially after what happened with bank of america, i mean literally somebody was asleep at the wheel. >> what surprised many was how quickly verizon rolled back the fee considering it took bank of america about a month to rescind its plan to charge a $5 monthly fee o people who use their debit card for purchases. verizon wireless may have been moved to change its mind when the federal communications commission put out word earlier on friday it thought the company's actions merited closer scrutiny. back to you. >> heather: julie banderas live in the news room. thanks. >> gregg: the clock is winding down to midnight right here in the united states. you know what? it's already a new year in other parts of the world. sydney, australia, for example. look at that. taking on some of the first celebrations of 2012, ringing in the new year with dramatic fireworks display. beautiful.

hours later, taiwan's turn to let loose. spectators treat to do another display. centered on the massive sky scraper. a similar scene in dubai. stunning fireworks lighting up the night sky after sprouting from the tallest building in the world. and soon it will be new york city's turn to celebrate. will mother nature go along with it? maria molina is in the weather center. i don't remember in the 20 years i've been here that it's been this warm on this day. >> oh, yeah, gregg. mother nature is cooperating big time. so for those of that you waited for this new year's celebration to go out and watch the ball in new york city, times square, you picked a perfect year because it is just beautiful out there. we did have a storm system roll through, most of those showers have really diminished here in the past six hours. so we do expect conditions to remain dry and like gregg mentioned, temperatures are extremely mild. today's high was actually at

11:54 a.m., about 54 degrees. that's 15 degrees above what's normal for this time of year. for tonight, right before the ball drops, we're expecting temperatures to be at 45 degrees with clear skies. some breezy conditions. five to 10 miles an hour. that's what the winds are expected to be. it looks beautiful. as we look at times square camera, people are lining up. it's packed out there. light coat will do. and you know what? i'm from south florida and this is mild even formee so this is good weather. >> gregg: beautiful south florida. kind of wish we were there, too, as well. >> come on, gregg. >> gregg: maria, thanks very much. be sure to tune in tonight for fox news channel's all american new year hosted by bill hemmer, meghan kelly, live coverage of the party in times square begins at 11:00 p.m. eastern time and ahead of the show, love for to you send us your new year's greeting, text it.

it's real easy. type utext, then a space. then especially send it to 36288. we got a lot of good snuff step as mentioned at the top, several candidates have joined rick perry's fight against virginia's board of elections. so is there a chance that their names could be a last-minute addition to the ballot? our legal panel weighs in up next. >> gregg: plus, some critics say michelle bachmann is running out of steam in iowa after an early victory. the ames straw poll. we look at whether she and other candidate also still be standing after tuesday's caucuses. >> god bless you! let's keep it going! this is victory, so win! win! win! win! win! go team! [ cheers and applause ] yeah, i l bud i'm stild stubbed up.

[ male announcer ] truth is, nyquil doesn't un-stuff your nose. really? [ male announcer ] alka-seltzer plus liquid gels fights your worst cold symptoms, plus it relieves your stuffy nose. [ deep breath ] thank you! that's the cold truth!

s

>> heather: welcome back. reports of dwindling resources and support for michelle bachmann in iowa. bachman spent lots of time, lots of money in the state earlier in the year helping her win the ames straw poll. remember when that happened? the latest numbers from the real clear politics polling average, they show that bachman is on a decline, to say the least. mitt romney, ron paul leading the pack. bachman sitting in sixth place. so can her campaign survive after iowa? here now, tim, a former economic advisor to the clinton administration and former advisor to the senate finance committee and brad blakeman, former deputy assistant to president george w. bush. thank you both for joining us. and happy new year to you.

>> happy new year. >> heather: not really starting out to be a very good new year for michelle bachmann, at least in iowa. so brad, i'll begin with you. is bachman done? >> i have a feeling that iowa will be bachman's last stand. i think she certainly did not have the kind of performance that she had hoped for after winning the iowa straw poll. as you pointed out, the polling shows she may come in dead last. i don't see how when you put all your eggs in the iowa basket, how you can move into new hampshire with no organization, then followed by south carolina. the only thing that will keep her alive are debates and whether or not her adversary also allow her to share a debate stage based on her poof performance, no fundraising remains to be seen. if she's smart, perhaps she'll seek an endorsement by other candidate, now would be a good time to talk to michelle bachmann after tuesday to see if they could capitalize on her following. but i think right now, iowa seems to be the place where she will most likely end her

campaign. >> heather: tim what, does this say about the ames straw poll specifically if does this really lessen its significance? >> i think it says less about the ames poll than the weakness of the republican field generally. you've got a mitt romney who is ostensibly still the front runner action but 75% of republicans who find him not conservative enough or not consistent enough. in iowa and nationally if you go back to trump and palin, you've seen something like six or seven different candidates come and take the plead drop quickly. i really think it reflects more a very weak republican field and a lack of definition of where republicans want to go this year. >> heather: and who do you think, tim, and i'll let you continue, do you think will be left standing after iowa? >> it's going to be really interesting. i think once iowa is over and probably once new hampshire is over, you're going to have a couple of people drop off. i agree with brad that the michelle bachmann is likely to drop off, but probably perry is at the back of the pack. if you look at new hampshire and south carolina and florida,

you've got to think both perry and bachman are going to be out. where do those supporters go? you've seen romney unable to break that 25% mark. and the question will be, can the republicans coalesce around that one antiromney candidate? i think it's probably gingrich at the end who can be that candidate. but he's got to do well in iowa and obviously got to win south carolina and florida. >> heather: gingrich counting on south carolina. brad, we spoke with john in the first hour, he said that he had been to iowa. he spock with voters there who said they changed their mind three times. so the undecided vote definitely still lingering. who do you think will come out on top? >> i think it's either going to be ron paul or it's going to be mitt romney. mitt romney is somebody who originally everybody thought had been written off in iowa, even if he comes in first or second, he'll win new hampshire by all accounts and then he goes into the next contest in south carolina where the governor of south carolina has thrown her support. and then shortly after that, you

have florida. look for marco rubio perhaps to endorse romney. so i think romney surge is coming. and everybody has been waiting for that 25% breakout and i think you'll see it. i think he's played it exactly right. i think folks will hang on as long as there is a debate stage for them to stand on. whether they're entitled to it or not. so i think based on what i believe and my experience in politics is that people are not going to start dropping out 'til after south carolina and perhaps michelle bachmann will be the first casualty. >> heather: mitt romney, not in iowa. ron paul, not in iowa. both front runners. but you know who is. santorum. and santorum is surging. you mention that had, the surge. what do you think, tim? is santorum really the one killing bachman overall with the conservative, the social conservative vote? >> well, i think it's hard to say. santorum is timing -- his time something excellent. but if you look back four years

ago issues back to your original question about the ames policy poll. it really is not a great indicator at all on the republican side of what's going to happen in the republican race. santorum can come in in a third in iowa, even second in iowa and he still at the back of the pack in new hampshire and south carolina and florida. so it's hard to imagine, i think, that even a strong showing by santorum in iowa is going to amount to very much. >> heather: so what do you think? do you think it's possibility, because some of our pundits have said that they think that he might could pull a huckabee and actually win iowa. brad, what do you think? you did say you think romney or paul. >> i think it's unlikely. i think rick will probably come in third, but if he comes in iowa in iowa, he lives to fight another day. the problem is he doesn't have the organization that is needed in new hampshire and south carolina to compete. so i have a feeling that the guy who benefits most from santorum

moving up is mitt romney. he's blocked the votes away from others who were seen more competitive a few short weeks ago. so santorum's victory might actually help romney more than rick himself. >> heather: tim, i'll give you the final word here. >> well, i think brad is right on that point, flank. i think republicans have to decide, and again, you've got romney who can't break the 25% because i think people see him as very inconsistent a flip flopper. but republicans have to decide if there is one candidate on the conservative side who they're going to back over mitt romney. right now, 75% don't like romney is splitting up their vote among santorum and paul and perry even still. and they've got to make a decision as to who that candidate is going to be. i think newt gingrich is bess placed. >> heather: that's the difference between now and what happened behind huckabee. they coalesced behind huckabee and now it's being split. thank you for joining us. we appreciate it. >> thank you. >> heather: fox news -- happy

new year. fox news is your home base for the iowa caucuses, as mentioned. tomorrow night at 8:00 p.m. eastern, america's election headquarters special, previewing tuesday's race. that's hosted by bret baier live from iowa and megyn kelly live from new york city. plus special coverage of the caucuses this tuesday beginning at 6:00 p.m. eastern time right here on the fox news channel. >> gregg: virginia now requiring voters to pledge their support to the republican party if they want to participate in the gop super tuesday primary. is that a violation of the constitution? we have our legal panel to weigh in on that and more. additional presidential candidates joining a lawsuit to get in on the primary ballot in virginia. what about that one? again, our lawyers are here to weigh it in what is it about taking a first step that we find so compelling?

is it because taking a step represents hope? or triumph? at genworth, we believe in taking small steps every day to keep your promises, protect what matters, and prepare for a secure financial future. no matter where you want to go, one step at a time is the only way to get there. go to genworth.com/promises. what is thishorty?

uh, tissues si i'm sick. you don't cough, you d't show defeat. give me your war face! raaah! [ male announcer ] halls. a pep talk in every drop. offer

>> heather: welcome back. it's the bottom of the hour. that means it's time for the top of the news. iraq celebrate ago new national holiday to mark the end of america's military presence there. the prime minister saying the u.s. troop withdrawal begin has new chapter for his country. house speaker john boehner could be facing some tough competition next time he runs for office in iowa. fox news confirming that a 26-year-old plans to mount a

primary challenge next year. in many parts of the world, the new year is already history. in new zealand, massive fireworks show kicked off 2012 celebrations for the rest of the world. pretty. >> gregg: rick perry is finding more company in his legal battle to get on the ballot in the state of virginia. lawyers for newt gingrich and other candidates there sending a letter to the state board of elections and they're asking the board to either add them to the primary ballot in the commonwealth or wait a judge's ruling. our legal panel joins us to talk about it. defense attorney david wolf and trial attorney rachel self, good to see you both. david. are virginia's rules so difficult, so onerus that they create undue burden on the candidates and thus, depriving them of their first amendment free speech rights and in the

process, disenfranchising citizens and their very precious constitutional right to vote? >> yeah, i think that last one may be the big problem. the score has already decide that had making the people who gather the petitions or gather the signatures registered voters is unconstitutional. it's a violation of the first amendment. now, that may be applied in this case and if so, this whole standard is going to be thrown out. the problem they have here is it's a violation of free speech, a violation of due process, and the biggest problem they may have is bush v gore. that standard could be applied here. and in that, you'll recall every county had a different standard for counting the ballot and it was a violation of equal protection. in this case, every state seems to have or many states do, a different standard for collecting the signatures to get on the ballot and if this court decides that, it could be tossed out in the very same way that bush versus gore was tossed out and i think that's going to happen here.

>> gregg: rachel, in virginia, the gatherers or the petition circulators, is their official name. they have to be residents of the state of virginia who are either registered or eligible to vote. what's the rational basis for that? i found one case from the 10th circuit called term limits versus savage, 2008, that said a residency requirement is unconstitutional there. there are a couple of other federal appellate courts ruled the same. >> absolutely. and the courts are split on this. several courts say that it's unconstitutional. other courts say the states have the right to regulate it. i don't disagree that this is a bad regulation. but just because it's a bad regulation doesn't necessarily mean it's unconstitutional. here we have a content neutral regulation that treats all candidates equally, that's not promoting any particular agenda, that has been in the game the entire time that alt players have been in the game and now to come in halfway through the game and say, oh, i don't like the

rules, it seems a bit cake and eat it too to me. and to ask a federal judge to step in and do it when really the solution here is legislative change. i think it was a brilliant political move. >> gregg: we looked at some of the other states, indiana requires 4500 signatures. illinois, 3,000. pennsylvania, 2,000. should the court look at the other states in determining whether virginia's rules are reasonable? >> absolutely, when you come to equal protection, this is a presidential election. it's a federal election. there should be some sort of equality among the states as far as the regulations. can you imagine what these candidates have to go through when every state has a different requirement for voters and registered requirements among the people who collect the signatures? it's out of control really. they're favoring form over substance. virginia residents won't be able to vote for people who may well end up as the candidate for president of the united states. >> gregg: there is a sort of common sense argument and

occasionally judges have common sense. newt gingrich still leads or is tied for the lead in national polls. so when a state excludes a leading, popular candidate, isn't that evidence of unfairness that may be tantamount to infringement on constitutional rights? >> i don't think it is. i'll tell you why. i believe in small government. i'm not interested in having the federal government regulate something where the constitution allows states to set up the rules to do it. and in this particular instance, as i said, i don't believe it's clear cut. there's a reason that federal judge didn't allow the preliminary injunction in this. and it's because it's not clear cut. and in this particular issue, the state has the right to regulate its rules. and like i said, i don't disagree that it's a bad law. but i think the way to solve it is to amend the legislation and not seek an activist judge to go against the -- >> gregg: david, i want had hit another subject here about virginia. we have been reporting today

that apparently they have this sort of loyalty oath that voters in the gop primary are required to sign and it reads as follows i, the undersigned, pledge that i intend to support the nominee of the republican party for president. isn't that unconstitutional? >> yeah, i really think it is. i think it's a violation of number one, the first amendment free speech rights. and i also think, gregg, this is a form -- it may be subtle, but a form of voter intimidation because it sort of implies that if you don't vote gop when you actually vote for president, then there may be consequences and it's a little bit ambiguous, but i just think in the end, that's got to be mixed. i'd hit the delete button. >> gregg: rachel, you got to agree with that. >> i totally agree. i think it's grow bogus. >> gregg: people could who go to the force and granny is forced to sign this pledge. so she may not understand. she's not going to get tossed in jail for violating it. but she may think she's kind of being forced to vote a

particular way. >> well, regardless of the fact that doesn't have any legal teeth, the general person is not necessarily going to know it doesn't have any legal enforcement way. so it will have a chilling effect on the voter and i don't think that's going to hold up at all and i don't agree with it. >> gregg: yeah. that one is going to be tossed. david, rachel, two terrific lawyers, great to see you. good discussion. happy new year. >> happy new year. >> happy new year u guy, thanks. >> heather: as gregg and our legal panel just mentioned, the republican party in virginia taking a bold step requiring voters in the super tuesday presidential primary to sign a loyalty oath. peter doocy explains more from washington. >> as of right now on march 6, super tuesday, republican voters in virginia will have two choices on their primary ballots. mitt romney and ron paul. but before they're even allowed to pull the lever for either, they've got to promise they'll do the same thing in november for the eventual nominee by signing something that says, i, the undersigned, pledge that i

intend to support the nominee of the republican party for president. now, if you break this pledge, you won't get hauled off to jail. it's not legally binding. but regardless, in the old dominion state, some republicans think this is wreckless. >> judge wye is this mandatory voting for someone you never heard of and might not be running for office right now. fort republican party to depart so far from what the founders wanted, i just think it's a mistake. >> still, this pledge got the unanimous approval of the state election board. they voted 3-0 to implement it and it's very interesting. not long ago issues newt gingrich said that if ron paul got the republican nomination, he wouldn't be able to support him. well, since gingrich is a virginia resident, if he sticks to his own personal pledge not to back paul, then he'd be clashing with the pledge to a state's gop. now we wait and see what happens on primary day. >> heather: peter doocy in washington.

thanks. >> gregg: times square isn't the only hot spot this new year's eve. tens of thousands of folks expected to gather in atlanta for the city's annual peach drop celebration. kaitlyn from our atlanta affiliate has that story. >> running cables, check lights, sky fox 5 flying above crews putting the final touches on atlanta's new year's eve party centered on the 800-pound fiberglass and foam peach. >> it's a family event for all ages. it's a great way to ring in the new year with an annual peach drop tradition. >> the annual tradition known as the peach drop, will bring thousands to underground atlanta. refuseleers. >> we started working on this plan the first day we got to work last year after the event. >> officer also monitor crowds from the new video center that can access thousands. >> we hope that fights and outbreaks, we can control the

crowd. >> the peach drop isn't the only party in town. auburn and virginia fans setting up shop for saturday's chick-fil-a bowl, sold out for the 14th straight year. >> gregg: that was kaitlyn pratt from waga in atlanta. >> heather: it is almost time to uncork the champagne, almost. it is the beverage of choice. yes. >> gregg: look at that. he did it with a sword. >> heather: that's pretty talented. retailers are getting a bubbly about this year's champagne sales. a live report on that straight ahead. >> gregg: and the party is kicking off in the ukraine. more spectacular video of 2012 arriving from around the world. stay tuned for that. look at that beautiful scene. >> heather: wow !

>> heather: happy new year. the bubbly will certainly be flowing tonight and this year, champagne and sparkling wine, those businesses bubbling back up after seeing sales fizzle during the recession. casey stegall is live with the latest on this. hi, and happy new year. >> hey, happy new year to you. gregg jarrett hinted if it's a story about alcohol, i'm on it. the champagne industry has more than just a new year to toast. shipments are up for 2011 after hitting a low in 2008 and 2009. if you don't know, champagne is a type of sparkling wine that can only come from the french region of champagne. now, there is a group called the champagne bureau, which represents the french growers and it tells us that the region shipped 30% more bottles to the united states this year compared to last. while americans have historically favored beer and spirits, their taste buds are

apparently changing. >> wine consumption is increasing dramatically and we believe the growth in champagne shipment, the growth in americans buying champagne in the united states is also a progression on that side. they're working wine into their meals, their celebrations more and more and champagne has a distinct place in the american psyche. >> and a bargain price bubblies cashing in. everything produced outside of champagne simply called sparkling wine, includes bottles made right here at american vineyards and one southern california store has seen an increase in the number of people shying away from those big ticket french brands and buying local. >> once upon a time, you had more of the middle class would venture into an experiment with them. but since the 2008 economic turn down, they've moved away and we don't see those buying anymore. plus we as wine merchants promote and support smaller brands we make equally good

champagne for significantly less money. >> keep in mind, while sales are improving, they are still not at pre-recession levels. the champagne region also getting a boost from shipments to asia, of all places, specifically china and hong kong where brand names there are selling extremely well. heather, the only thing i have to say, cheers. >> heather: cheers to you, too, and happy new year. >> you as well. >> gregg: a little bubbly. always fun on new year's. champagne corks are already popping and it's already 2012 across parts of the globe. and the parties are rocking. i want to show you some. this is kiev, ukraine. the party in the main square. how beautiful is that? let's go to hong kong. big countdown to the new year and an awesome fireworks display. wow. moscow, a massive pyrotechnics display lighting up the nighttime sky to usher out the old, bring in the new.

i'm guessing a little vodka was poured there. and here in the united states, the big new year's eve party, times square, a block away from us. it's only hours away now. a live picture, the cross roads of america as it's known. revelers crowd not guilty to watch the ball drop. if you can't make it to times square yourself north texas problem. fox news channel is the place to celebrate as you ring in the new year. the fun begins at 11:00 p.m. eastern. megyn kelly, bill hemmer hosting, along with the guest trace adkins, big and rich and the cast of the broadway hit "rock of ages." and send us your new year's greeting, text youu text. a place, then type a brief message and type it to 36288. it's real easy. >> heather: happy new year. some brand-new polls are out showing who is in front in iowa

and which party has the best shot at the white house. plus what americans really think about congress

>> gregg: new details on the race to win the iowa caucuses, it's coming up quickly on tuesday. >> heather: new poll showing a virtual tie between mitt romney and ron paul, rick santorum, rick perry and newt gingrich rounding out the top five. >> gregg: the latest polling by scott rasmussen, president of rasmussen reports, and the author of "the people's money." he joins us now live. scott, thanks very much for being with us. happy new year in advance. so this is within the margin of error, right? so arguably it's a tie. >> absolutely. the last three polls we've done in iowa, romney has been in

first, ron paul has been in second. they've been very close. i think both those men will feel pretty good after january 3. the next three, they're playing musical chairs and desperately hoping not to be at the bottom of that pack. >> heather: nationally, you polled a lot of voters across both spectrums and what were the election day predictions from those that you polled? >> 47% say they think the republicans will win the white house in 2012. 39% think that president obama will get reelected. by the way, it's by two to one margin, people think republican also control the house and a plurality think they'll win the senate. if people are right, it will be all republican federal government next year. but it's a long way to november. >> gregg: do people have confidence in winning the white house? >> republicans a bit more confident than democrats in terms of their expectations. that's consistent with all kinds of data we've seen about republicans being more enthusiastic about this election year. i think the perception that's

out there is people recognize barak obama is vulnerable. republicans are concerned about finding the right candidate to take advantage of that. democrats are concerned about the election being a referendum on his performance. >> heather: scott, let's switch to another branch of government. the job approval rate of congress. the numbers have been dismal. >> all time low right now, 5% say congress is doing a good or excellent job. 68% say poor. look, most americans think the fiscal crisis we have is a huge national problem. they don't expect anything to get done before the election. regardless of who wins control of congress or, who they don't expect spending to be cut after the election. that's one of the reasons these numbers are so dismal. >> gregg: let's talk about my favorite, new year's resolutions. i never make one. that way i don't have to break it. but look, what are we, six hours away in new york, at least, from the new year.

did you measure people's resolutions? >> 30% say they're going to make a resolution and 41% say they're very likely to stick to it. another 50% who say, i think i'll stick to it. i guess that means at least until it gets tough. but new year's resolution, watching football, all part of the traditional celebrations. >> gregg: all right. scott rasmussen, author of "the people's money." it's out already. right? tell me what it's about real fast. >> it shows how the american people would solve the federal budget crisis. they're far more willing than the political leaders to make tough choices. the book comes out in january, but you can preorder it right now. >> gregg: fantastic. congratulations. "the people's money." scott rasmussen. always great to see you, happy new year. thanks very much. >> thank you. >> heather: no resolution for you? >> gregg: no. i'd just break it and be upset about it. >> heather: all right. >> gregg: how about you?

>> heather: i do make resolutions. >> gregg: you want to tell us? >> heather: to be happy and healthy. >> gregg: you can't go wrong with that. that's going to do it for us. we hope you have a wonderful and safe new year. there's a look at times square. >> heather: we'll see you back here tomorrow at 4:00 o'clock. >> gregg: bye-bye. since i've lost weight i have so much more energy than i used to, when i'm out with my kids, my daughter's like, "mom, wait up!" and i'm thinking, "shouldn't you have more energy than me? you're, like, eight!" [ male announcer ] for every 2 pounds you lose through diet and exercise alli can help you lose one more by blocking some of the fat you eat. simple. effective. advantage: mom. let's fight fat with alli ♪

forty years ago, he wasn't worried about retirement. he'd yet to hear of mutual funds, iras, or annuities. back then, he had something more important to do. he wasn't focused on his future but fortunately, somebody else was. at usaa we provide retirement solutions for our military, veterans and their families. from investments... to life insurance... to health care options. learn more with our free usaa retirement guide. call 877-242-usaa.